The Salary of a General Manager of a Restaurant: 4 Facts

Understanding how server salaries work is essential for both restaurant owners and job seekers. Pay is shaped by several factors, including experience level, skillset, qualifications, restaurant type, tipping practices, and geographic location. Unlike standard jobs, servers are often classified as tipped employees, meaning their base per hour rate is lower than the general applicable minimum wage. 

As a restaurant owner, retaining talent and building a high-performing team starts with offering competitive wages. Effective training and solid benefit packages support your sales goals, smooth operations, and customer satisfaction.  

According to the employment site ZipRecruiter, the average pay per hour for servers in the U.S. ranges from $10.34 to $17.31. This article explores the national averages, what influences server pay, and how businesses can balance fair compensation and long-term profitability.

Understanding the Average Hourly Pay for Servers 

The average state minimum hourly wage for servers in the U.S. varies significantly. It depends on several factors, such as restaurant type (full-service vs. quick-service), tipping practices, and local cost of living.  

National Averages for Server Wages 

According to the Bureau of Labor Statistics (BLS), the median hourly wage for a waiter was $16.23 in May 2024, including tips. Servers regularly receiving tips are classified as tipped employees and are subject to different wage rules under the Fair Labor Standards Act and enforced by the Wage and Hour Division.  

Employees in full-service restaurants typically earn a higher wage than those in quick-service settings, largely due to more complex service, increased customer interaction, and higher average check sizes. 

Tipped vs. Non-Tipped Server Wages 

While the federal tipped minimum wage remains low, the following states: California, Washington, and Oregon, have implemented higher state minimum wage rates or eliminated the tip credit altogether. This means that in some places, restaurants must pay tipped employees the full state minimum wage on top of tips.  

Servers rely on tips for a significant portion of their income. For example, depending on location and restaurant type, employees may earn anywhere from $50 to over $200 in tips per shift, which adds considerable variability to their overall pay. 

Regional Differences in Server Pay 

According to ZipRecruiter, the highest-paying states for servers include California, Washington, Florida, and New York, which are driven by higher living costs. These states are also home to stronger Department of Labor protections and state minimum wage laws. In contrast, states like Tennessee, Nebraska, and South Carolina report lower average wages. 

There’s also a notable divide between district and rural areas. City servers often expect to earn more due to higher menu prices, busier shifts, and larger tip averages, while those in rural settings may see fewer customers who spend and tip less.  

3 Factors That Influence Server Hourly Pay 

While server compensation often reflects regular market rates, several key factors directly affect per hourly wages. Completing a proper wage analysis is essential when setting competitive pay. 

1. Type of Restaurant and Industry Segment

Servers working in fine dining or upscale establishments typically earn more than employees in casual dining, fast food, or buffet-style restaurants. This is largely due to menu pricing, guest expectations, and the overall dining experience—factors that heavily impact tip amounts.  

2. Experience and Seniority in the Role

As in most roles, entry-level servers usually start at the lower end of the pay scale, while experienced staff with proven service skills and product knowledge often earn more. Servers who take on additional responsibilities, such as bartending (which requires a liquor license for bartenders), mentoring new hires, or handling shift leadership duties may receive higher wages or access to more profitable shifts.  

3. Shift Timing and Peak Hours

Working dinner shifts, weekends, and holidays usually result in higher earnings due to increased traffic and larger average tips. However, compensation isn’t only about timing—it’s also about how motivated and supported restaurant staff feel during these busy hours. 

Using restaurant staff scheduling software can help managers give employees a better work-life balance, improving retention and morale. Flexible scheduling also allows high-performing staff to access premium overtime pay shifts, ultimately maximizing their earnings.

How to Set Competitive Pay for Servers 

As a restaurant owner or manager, offering competitive compensation means staying up to date with industry data and aligning your wage strategy with both labor costs and your business goals. Factors like tip pooling, service fees, and restaurant revenue all play a part. 

Benchmarking Against Industry Standards 

Start by comparing your current pay rates with local and national data. Then assess whether your offer is attractive to the candidates your restaurant needs—whether that means fast-paced quick-service pros or polished fine dining servers. Tools like restaurant payroll software can help employers manage consistency and visibility around wages. 

Balancing Wages with Restaurant Profitability 

Labor costs should be evaluated based on your restaurant sales and revenue. While there’s no universal target, many restaurants aim for labor to fall between 25–35% of total revenue. Striking the right balance between a solid base pay and additional tip income is essential to remain competitive and profitable.  

Employers should always verify that employees' tips combined with base pay reach the applicable minimum wage required by local law. In some regions, this may be enforced by local government. 

Implementing Tip Pooling and Service Fees 

Decide whether a tip-sharing model or service fee fits your restaurant culture and team structure. Tip pooling can help equalize earnings across front-of-house roles, while automatic gratuities or service charges may offer more predictable income. Each option has legal and operational implications, so it’s important to define how these systems affect take-home pay and taxes clearly.  

3 More Server Perks to Know 

Offering additional benefits like healthcare, paid time off (PTO), and meal discounts can help improve server retention. It’s kind of like how loyalty program benefits are ideal for customer retention. Career growth opportunities also contribute to employee engagement, fostering team stability.  

1. Employee Benefits That Attract and Retain Talent

Providing comprehensive healthcare shows that you value your servers' well-being. PTO, meal discounts, and an inclusive work culture are also essential for retention. When restaurant employees feel cared for, they are more likely to stay long-term, leading to better team cohesion and lower turnover. 

2. Performance-Based Bonuses and Incentives

Investing in people is key, especially in fast-paced industries like restaurants where turnover can be high. Performance-based bonuses and upselling incentives are effective tools for rewarding the right person for the job. These employee benefits not only help staff earn more money but also boost motivation. 

3. Career Growth and Advancement Opportunities

Many top workers aim to move from server roles to management positions, and providing clear career growth opportunities is essential to retaining these individuals. Offering the chance for advancement helps employees see the potential for career development based on their job title. Providing opportunities for growth, like training sessions on managing the restaurant’s payment system, also supports professional development. 

Frequently Asked Questions About Server Pay 

As a manager, understanding server pay is key to attracting and retaining top talent. Here are answers to some of the most frequently asked questions about server pay, helping you ensure your restaurant stays competitive in the market. 

How much do most servers make per hour? 

The average hourly pay in the U.S. ranges from $9.62 to $15.38, according to ZipRecruiter, with tips added to direct wages. However, this can vary based on factors like the type of restaurant, geographic location, experience, and hours worked. If a server believes their employer is not following minimum wage laws, they can file a claim. 

What's a good salary for a restaurant server? 

A good salary for a restaurant server depends on the restaurant’s location, the type of service offered, and the level of experience required. Typically, a competitive salary for servers is between $15-$20 per hour (including tips).  

What is the federal minimum wage? 

As of 2025, the federal minimum wage is $7.25 per hour for non-tipped employees. However, servers and other tipped workers have a different cash wage structure.  

The federal minimum hourly wage is $2.13 per hour. Many states, however, have their own minimum cash wage laws that exceed the federal regulations.  

What's considered a good hourly wage in 2025? 

In 2025, a good per-hour pay for servers is generally considered to be between $17-$20 per hour, including tips. This varies based on location, with higher-paying areas such as San Francisco and other high-cost cities requiring restaurants to offer higher wages to remain competitive.  

Understanding and Optimizing Server Wages 

Balancing profitability with competitive pay is one of the most important challenges for restaurant owners. But offering fair, well-structured compensation isn’t just about staying compliant—it’s a strategy to attract top talent, pay employees covered by wage laws, reduce turnover, and create a team that delivers a consistent customer experience. 

Small changes, like promoting responsible tipping practices and meeting the minimum cash wage required, can help servers boost their earnings. Using smart scheduling tools also gives your business more operational control. 

Want to go a step further in supporting your hiring, payroll, and cost-control goals? Book a demo with Paytronix to see how our tools help restaurants like yours build stronger teams. Also, check out our Loyalty Guide to see why retaining guests is just as important as hiring the right people.